What's Happening with RH
Restoration Hardware (RH) reports second-quarter earnings September 4. The company will report its quarterly results after the market close, with the consensus calling for earnings of $1.73 per share, up from $0.65 during the same period last year. On the year, RH stock has appreciated 77%.
Technical Analysis
RH was recently trading at $158.91 down $5.58 from its 12-month high and $114.16 above its 12-month low. InvestorsObserver's Stock Score Report gives RH a 96 long-term technical score and a 98 short-term technical score. The stock has recent support above $150 and recent resistance below $164. Of the 15 analysts who cover the stock 4 rate it Strong Buy, 0 rate it Buy, 10 rate it Hold, 1 rate it Sell, and 0 rate it Strong Sell, RH gets a score of 84 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
RH has soared in 2018, and the stock remains very close to its all-time high. The stock's recent strength has pushed its valuation higher, but its forward P/E is just 21, thanks to the company's expected 29.1% annual earnings growth over the next five years. The market has rallied behind the stock thanks to recent earnings strength and its expected future growth, but shares are definitely priced for perfection at this point, so current shareholders would be wise to have a clear exit strategy in place just in case the company's quarterly numbers disappoint. A strong housing market continues to drive demand, not only from new homebuyers, but also current homeowners that are looking to upgrade their current homes while home prices remain high. The market expects a good quarterly report, with a whisper number of $1.77, and analysts have an average price target of $143.18 on the stock.